GCS sports revenues

July 02, 2001

greater than some

By Hillary Dickerson

Next year, the Gaylord Community Schools (GCS) athletic fund budget projects that it will take $302,000 from the general fund to cover some of the costs - salaries and fringe benefits which will equal $302,317 - in the overall athletic budget of $509,469.

While both Alpena and Petoskey have similar budgets - $550,000 and $499,552, respectively - the amount each district proposes to raise in revenues is considerably less than at GCS. Before the transfer from the general fund, Alpena will raise $67,000 - 12 percent of the total revenue - and Petoskey $96,000 - 19 percent of its revenue. Most of those funds will come from gate receipts and tournaments because neither school factors in contributions of any sort.

At the same time, the more ambitious GCS plan proposes to bring in $208,300 in revenue - 41 percent of the total revenue - through gate receipts, tournament fees, the Gaylord Athletic Boosters, donations, fundraisers and the $55,000 from other sources. The latest concept is a combination of things, including an activity fee. (See related story.)

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Tina Powers, GCS executive director of business and finance, explained the reason for the discrepancy is that school districts have the freedom to transfer varying amounts to the athletic fund - some schools are able to do that if they wish. In Gaylord's case, however, there is an ever-present need to rebuild the fund equity which is expected, at the end of the 2000-01 school year on June 30, to factor in at $555,185. Just two years ago, at the conclusion of the 1998-99 school year, the fund balance was $1.2 million, and providing any further funding to athletics would only further deplete the already faltering balance.

Last year, GCS revenue, as noted in the March budget amendment, was at $149,907 while the initial budget projected $209,000 in revenues. A decrease in gate receipts, unallocated revenue sources and miscellaneous funding created a shortfall totaling $59,093.

In a breakdown of the per-athlete costs for the district, it is evident that the fees GCS has proposed implementing to help defray costs will only make a slight dent in the overall per student cost that athletics places upon the district. Using GCS Athletic Director Karen Leinaar's estimate for 2001-02, of 515 athletes at the high school and 449 at the middle school, the cost per student athlete will be $528.

A controversial pay-to-participate proposal may give way to a less costly activity fee (See related story.) The latest proposal, expected to be recommended at the July 9 board meeting, is for an annual $35 per athlete "activity fee" at the high school, with a $10 fee per athlete at the middle school. That's a significant reduction from the scale introduced by Leinaar at a June 5 finance committee meeting.

As far as per-student costs go for athletics, Alpena estimates comparable numbers to GCS at both the high school and middle school levels to end with a cost of approximately $550 per athlete. And, finally, Petoskey, with 743 athletes at the high school and a similar number to GCS at the middle school, would factor out to approximately $418 per student.

Liz Nortley, accountant for Petoskey Public Schools, explained that the $404,000 is transferred to help cover the costs of coaches and their benefits. For Petoskey, those costs total out to $333,552. She added that there are many more expenses for athletics than are outlined in the Petoskey athletic fund budget, but those expenses - new uniforms and other extras - are picked up by the boosters club. Unlike GCS, the Petoskey athletic department is not directly involved in the fund-raising process.

"It's where you put your emphasis," Nortley said, as she stated her belief that athletics is a key element of the educational process.

Alpena Public Schools salaries and benefits rein in at $287,108, while they transfer $483,000 from the general fund. Diane Block, director of business and operations at Alpena, said that the school system has a very strong booster club as well which, as a separate entity, helps to fund the "extras." Block thinks that it is terrific that GCS is able to raise the amount of revenue they are to keep the general fund transfer down, but that is not always possible for other districts such as Alpena.